Likely Misstatements ________

question 26

Multiple Choice

Likely misstatements ________.

• A)are those actually identified during the audit,so there is no uncertainty about their existence
• B)are those that probably exist,based on audit evidence examined
• C)are those that could exist over and above the total of known and likely misstatements because of the fundamental limitations of auditing
• D)are those for which the amount of possible misstatement cannot be precisely quantified

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Definitions:

Reporting

The process of preparing and distributing financial statements that reflect a company's financial performance and position.

Financial Statements

Official records that detail the financial activities and conditions of a business, including the balance sheet, income statement, and cash flow statement.

SMEs

Small and Medium-sized Enterprises, which are businesses with a limited number of employees and revenue below certain thresholds.

Not-for-profit Organizations

Entities that operate primarily for purposes other than to make a profit, focusing instead on social, educational, or charitable objectives.